Enhanced Day Ahead Commitment Project: Enhancements to the DACP IESOTP 244-3d.

Enhanced Day Ahead Commitment

Project: Enhancements to the DACP

IESOTP 244-3d

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What is Day Ahead Commitment Process?

A mechanism for:

• Developing a dependable view of the next day’s available supply and anticipated Ontario demand

• The economic commitment of certain dispatchable generators the day before dispatch in return for a financial guarantee

• The economic scheduling of imports the day before dispatch in return for a financial guarantee

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DACP Enhancements

• New calculation engine performing 24 hour optimization for energy and operating reserve while considering:– Three-part offers and commitment parameters– Combined cycle plant modeling– Inclusion of exports and linked wheel

transactions

• Revised cost guarantee principles

• Revised/new failure charges

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24 Hour Optimization

• The objective of the engine is to minimize the total cost for scheduling of energy and reserve over the entire day

• Scheduling decisions are made that benefit the entire day over that of a single hour

• Examples include – committing a not QS resource that may be more

expensive than an import in a single hour but has a benefit for several hours over other alternatives

– committing a not QS resource that may be more expensive than another not QS resource who has a longer run time

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Multi-Pass Run

Pass 1: determines initial set of schedules required to satisfy average hourly forecast demand.

Pass 2: determines additional schedules required to satisfy peak hourly forecast demand (utilizing pass 1 results).

Pass 3: determines final set of schedules for all resources based on average hourly forecast demand (utilizing pass 2 results).

Pass 1Commitment

Pass 2Reliability

Pass 3Scheduling

AverageForecast

AverageForecast

PeakForecast

Fixed cost associated with starting a resource in a given hour. 6

Resource Scheduling According to Three Part Offers

2. Speed-no-load costs

Minimum Loading Point

Start-Up Synchronize

3. Energy Offer

1.Start-up Costs

Three Part Offer = 1 + 2 + 3

t

MW

Fixed cost associated with scheduling a resource in a given hour.

Variable cost associated with scheduled quantity in a given hour.

*three part offers are applicable to not quick start resources

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Scheduling Accordingto Commitment Parameters

Minimum Generation Block Run Time

1st Start

Minimum Generation Block Down Time

Synchronize

Minimum Loading Point

SynchronizeDe-Synchronize2nd Start

Maximum number of starts/day = 2

*commitment parameters are applicable to not quick start resources

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Pseudo Unit Modeling

PSU1 = CT1 + 1/3 ST

PSU2 = CT2 + 1/3 ST

PSU3 = CT3 + 1/3 ST

PSU1 PSU2 PSU3

Physical Units Pseudo Units

• For a combined cycle plant, modeling allows scheduling of a combustion turbine in parallel with the associated portion of the steam turbine

• Scheduling is done in proportion to the gas/steam relationship at the facility

CT1 CT2 CT3 ST

Line A Line B

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Offer Resubmission for Cascading Hydroelectric Resources

GEN A

GEN B

3 Hour Delay

Same River System

• Hydroelectric resources that are energy limited and have a cascading dependency with a resource owned by the same market participant

• May resubmit offers for the second run of the DACP in order to receive schedules that reflect the hydraulic time lag between adjacent resources

HE1 HE2 HE3 HE4 HE5 HE6 HE7 HE8 HE9

GEN A

25MW

27MW

32MW

22MW

GEN B

17MW

19MW

24MW

14MW

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Inclusion of Export and Linked Wheel Transactions

IMPORT

EXPORT

LIN

KED

WH

EEL

• All transaction types can participate in the day-ahead.

- Imports- Exports- Linked Wheels

• Scheduling of internal resources accounts for intertie traffic and its impact to internal power flow.

• Commitments reflect both internal and external demands.

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New Generator Commitment Guarantee

• Guarantees a generator its day-ahead costs for the total amount and duration of its day-ahead schedule.– guarantee is based entirely on day-ahead offer– revenue shortfall is assessed by comparing the day-

ahead cost versus real-time revenue (energy, operating reserve, CMSC)

• Guarantee structure encourages:– punctual start-up for the first hour of a commitment

start– close compliance with real-time dispatch– a real-time offer strategy that aims to fully utilize

day-ahead schedule

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New Withdrawal Charge for Committed Generators

• Committed generators have their entire day-ahead costs guaranteed.

• Withdrawals of commitments impacts the least cost solution attained in the day-ahead.

• New withdrawal charge applies to committed generators who withdraw due to financial decisions.– Reasons outside of market participant control are

exempt (ie. generator outage)

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New Import Offer Guarantee

• Guarantees the day-ahead costs for arranging an import.– guarantee is based entirely on day-ahead offer– revenue shortfall is assessed by comparing the day-

ahead cost versus real-time revenue (energy and CMSC)

• Guarantee structure encourages:– a real-time offer strategy that aims to fully utilize

day-ahead schedule

• Excludes import legs of a linked wheel transaction.

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New/Revised Day-Ahead Intertie Failure Charges

• Import, export and linked wheel transactions that do not match their day-ahead schedules impact the least cost solution attained in the day-ahead.

• Assessed on scheduled quantities between day-ahead and the final pre-dispatch.

Day-Ahead Failure Charge

Real-Time Failure Charge

Day-Ahead Schedule

Pre-Dispatch Schedule

Real-Time Schedule

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Net Result of Enhancement

• Operational efficiency• Efficient resource commitment• Meaningful day-ahead results• Guarantees & charges that encourage

wanted behaviors